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Carbon neutrality is good for sustainable development and good business

Using SDChain to build your blockchain business intro video

In recent years, climate change has been a profound experience for more and more people and businesses, and the discussion of environmental sustainability has become more widespread. In order to achieve the goals of the Paris Climate Agreement, more and more business giants in recent years have proposed plans to become carbon neutral by 2050, using renewable energy as one of the ways to achieve their goals. Technology giants such as Apple and Microsoft will also require their supply chain partners to meet their carbon neutrality targets in the future. Compliance will be key to maintaining business competitiveness and presenting opportunities for new business models. Here’s how 2 companies are finding good business opportunities.

Tesla — Selling carbon credits is more profitable than selling cars

According to a professional reading of Tesla’s financial report, 2020 is the first profitable year for Tesla. The interesting thing is that if Tesla relied solely on car sales, it would still be in a loss-making year in 2020, but the key is that Tesla earns $1.6 billion from selling carbon credits, which is nearly half of its overall revenue. If the world is to achieve carbon neutrality by 2050, many carbon-emitting industries will have to buy carbon credits to offset their emissions. As Tesla continues to sell electric vehicles to expand its market share, it will be able to acquire more carbon credits, and the price of carbon credits is expected to continue to rise, making it an explosive revenue stream for Tesla.

Microsoft — Blockchain technology to purchase carbon credits for soil sequestration

Microsoft is promoting a carbon sequestration program in Australia that captures organic carbon in the atmosphere and stores it in the soil. The data is obtained through satellites, detection devices and other means, and the amount of carbon captured is calculated through a formula and then uploaded to the blockchain for verification. By acquiring the farm, Microsoft expects to obtain at least 43,338 metric tons of carbon credits. We hope that based on the continuous promotion of carbon sequestration technology, the soil will become more fertile for organic crops to be supplied to the consumer market, and that the sale of carbon credits and organic crops will become a good business for both sustainable development and profit creation.

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